This letter is provided in connection with
your audit of financial statements of _____________branch of _____ bank
for the year ended 31.03.2006 for the purpose of expressing an opinion as
to whether the financial statement give a true and fair view of the
financial position and of results of operations for the year. Please be
informed that audit of your branch will be started by our audit team
headed by ______ on________. You are requested to provide the following
information to us before commencement of audit

List of books of accounts maintained by
the branch along with responsible for the same

Organizational chart of bank and bank
branch

List of departments in the bank branch
along with name of head of department.

Major goals achieved during the year by
the branch

Authority and responsibility of each
officer in the bank

Types of banking products offered by the
bank along with customer base number and business of each product during
the year ending 31/03/2006

A specimen Copy of all the forms used by
the branch during its business for example Account opening form,
Application for loan, credit appraisal form, form for Bank Guarantees
etc

Special feature of each banking product

Details of various charges on various
banking products

Details of various incentives to the staff
for increasing bank business

Areas where work has been outsourced to
outsiders

Profile of each outsourced agency

Trial balance as on 31/03/2006

Financial statements prepared by the
branch as on 31/03/2006

Copies of last year annual accounts and
current year quarterly/half yearly accounts

Capital adequacy ratio of the branch along
with benchmark ratio

Accounting policy followed by the bank

Accounting standard applicable to the
branch

Write up on general internal control
adopted by bank

Information of top 10 borrower

Information of top 10 saving account
holder and Fixed deposit holder

List of applicable laws applicable to the
bank

Details of any fraud discovered during the
year

Copies of report of concurrent auditors,
RBI inspectors, Revenue auditors etc and compliance report on action
taken by bank on these report

Detailed write up on the software used by
the branch and its limitations along with list of reports generated by
the software

Instructions issued by Head office for
closing of accounts

Details of RBI circulars applicable to
bank branch

Name and designation of the person who
will be coordinating in audit

Provide copy of schedule of prepaid and
outstanding expenses and income as on 31/03/2006

Details of various charges on various
banking products

Details of property in which bank is
operating

Timings of the bank

Details of various insurance policy taken
by the bank

Procedures followed by the bank for
recovery of money from defaulters

Details of fixed assets owned by the bank

Details of investments undertaken by bank
on behalf of Head office

Details of investments undertaken by bank
on its own behalf

Foreign exchange services offered by the
bank

Details of pending claims for DICGC AND
ECGC

Details of inoperative accounts

Details of software used by bank

Website of the bank

We look forward to
full cooperation from your staff and we trust that you will make available
to us above information in connection with our audit as soon as possible .

Sub: Information required before
commencement of statutory audit for LFAR

This letter is provided in connection with
our audit of financial statements of _____________branch of _____ bank for
the year ended 31.03.2006 for the purpose of expressing an opinion as to
whether the financial statement give a true and fair view of the financial
position and of results of operations for the year.
These financial statements are the responsibility of the Bank’s
management. Our responsibility is to express an opinion on these
financial statements based on our audit. We are also required to give Long
form audit report. For issuing LFAR please provide the information

Cash

Limits fixed by controlling authorities
for cash balance

Details of cases where cash balance
exceeded limits fixed by controlling authority in the following format

S. No

Date

Cash Balance

Limits fixed by controlling
authorities

Reporting date to controlling
authorities

Reason

Details of the insurance policy of cash
Insured value

Name of insurance company

policy expiring date

Policy number

Name of the
persons along with their designation who are maintaining cash

Cash balance
on daily basis checked by _______. Details of latest cash checking in the
following format

S.No

Date of checking of cash balance

Cash balance

Currency wise denominations

Balance in books of accounts

Checked by

1)2. Balance
with RBI, SBI and other bank

a)Details of bank reconciliation
in the following format

S.No

Name of the bank

Balance in our books of other bank
account

Balance in other bank of our bank
account

Periodicity of reconciliation

Reason for difference(if ,any)

b) Details of old
outstanding items remaining unadjusted

S.No

Name of the bank

Date of entry

Amount

Nature of transaction

Reason for non-adjustment

Money at call and short notice

Details of money-at-call and short
notice in the following format

S.No

Date of Certificate of borrower

Amount as per certificate

Amount as per branch

Number of days lend for

Subsequent payment received on

Responsibility

Investments

For branches in India

a.Details of Investments held by
the branch on behalf of Head office

b. Details of income from
investments and their reporting to head office

c.Details of matured investments
in the following format

S.No

Nature

Certificate number

Amount

Maturity date

Reason for non–encashment

Advances

a. Procedure followed in the
branch regarding powers of officers in the following format

Nature of work

Responsibility

Approved by

Limits

Total amount of business undertaken
during the year

Checking of loan application

Enhancement of limit

Renewal of advances

b. Details of advances again lien
of deposits in the following format

S.No

Nature of advance

Account number

Outstanding balance

Nature of deposits

Lien date

Amount of deposits

c.
Details of reports of stock audit reports received in the following format

S.No

Name of the borrower

Outstanding balance

Sanctioned limit

Value of stock

Breakup of stock

Date of audit

d. In cases of advances to
non-corporate entities with limits beyond 10 lakhs details of audited
accounts received from borrowers as per RBI guidelines in the following
format

S.No

Name of the non-corporate entity

Limit of the borrower

Outstanding balance

Audited financial statement received on

Responsibility

e.Details of inspection of
physical verification of securities charged to bank in the following format

S.No

Name of the borrower

Outstanding balance

Sanctioned limit

Value of security

Breakup of securities

Date of physical verification

f.Details of pending claims for
DICGC AND ECGC

Particulars

Number

Amount

Claims as at the beginning of the
year (Year wise details)

Further claims lodged during the year

Total A

______ ______

______ ______

Amount representing Claims
accepted/settled (year wise details)

Claims rejected
(year wise details)

Total B

Balance as at the year-end
(year wise details)

_____ _______

______ ______

A-B

g.Details
of guarantees invoked and funded by the branch

Sr No

Date of invocation

Name of Party

Name of beneficiary

Amount

Date of recovery

Remarks

h.Details
of outstanding amount of Letter of credit and co-acceptances funded by the
branch

Sr No

Date of funding

Name of party

Nature(LC/ Co acceptance)

Amount

Date of recovery

Remarks

Other assets

a.Details
of stationery in the following format

Nature of stationery

Opening stock as on 01/04/2005

Receipts during the year

Issue during the year

Lost during the year

Closing balance as on 31/03/2006

Responsibility

Term deposit receipts

Drafts

Pay orders

Cheque books

Traveller’s cheques

Gift cheques

b.Details
of old outstanding in suspense accounts in the following format

Year

Amount

Remarks

Liabilities

a.Details
of inoperative accounts

S.No

Name of inoperative accounts holder

A/c number

Last transaction done in inoperative
account

Action taken with respect to inoperative
account

b.Details
of the overdue and matured term deposits

S.No

Term deposits Number

Period over which overdue

Interest provided

c.The number of items of bills
payable, sundry deposits etc and aggregate amount of old outstanding items
pending for three years or more

Year

No. of items

Amount (Rs.)

Remarks

d.Details
of contingent liabilities

Nature of contingent liability

Amount

Remarks

Guarantees

Letter of credit

Claims against the branch not
acknowledged as debts

Profit and loss account

a.Details
of matured term deposits

Term deposit certificate number

Amount of deposit

Maturity date

Interest after maturity date till
31/03/2006

Remarks

General

a.List
of Books of accounts maintained by branch manually

b.Report
on Controls and subsidiary records in the following format

Account

Date

General ledger balance

Subsidiary balance

Last date upto which balance d

For branches dealing in foreign exchange
transactions

Details of Nostro accounts and their
reconciliation

Nostro accounts branch address

Nostro accounts balance (in foreign
exchange)

Nostro accounts balance (in Rs.)

Balance reconciled on

Nature of differences

For branches dealing in very large
advances

Details of accounts with outstanding in
excess of Rs 1 crore which have been downgraded or upgraded with
regard to their classification as NPA or standard assets during the
year

Name of the borrower

Limit

Outstanding

Old classification

New Classification

Reason

For branches dealing in recovery of
NPA

Details of accounts with outstanding in
excess of Rs 1 crore has been downgraded or upgraded with regard to their
classification as NPA or standard assets during the year

Name of the borrower

Limit

Outstanding

Old classification

New Classification

Reason

Details of new borrowers transferred to the
branch in the following format